As funds tracking the NASDAQ 100 Index may Buy more Stocks, this could further strengthen MicroStrategy's upward momentum.
As an important buyer of Bitcoin, MicroStrategy's stock price has surged nearly 550% this year. According to the latest Pre-Market Trading stock price, the company's Market Cap has exceeded 100 billion dollars, more than double the value of its Bitcoin reserves.
Since it started to Buy and Hold Bitcoin in 2020, MicroStrategy has become one of the largest holders of Cryptos, which has enhanced the attractiveness of its Stocks as they often perform in line with Cryptos. Data shows that since 2020, MicroStrategy's stock price has increased by 3200%. Analysts believe that MicroStrategy's decision to Buy Bitcoin to protect the value of its reserve Assets is a key factor in the increased attractiveness of its Stocks.
Matthew Dibb, Chief Investment Officer of the cryptocurrency Asset Management firm Astronaut Capital, stated that this could be "the beginning of a capital cycle that may push up Bitcoin spot prices." Matthew Dibb remarked, "ETFs like the NASDAQ 100 ETF (QQQ) and many other Funds will Buy MicroStrategy's stocks to reflect their holdings in the NASDAQ 100, thereby boosting MicroStrategy's stock price. In turn, MicroStrategy can then Buy more Bitcoin through Bonds and stock issuance."
Matthew Dibb added, "In the long term, this is a significant milestone for Cryptos. In the coming months, we will definitely hear bullish and bearish voices, and discussions about MicroStrategy and its CEO Michael Saylor will become more intense."
It is worth mentioning that analysts from investment bank Bernstein predict that, in addition to the new ETF Inflow, MicroStrategy will gain higher visibility and recognition and is expected to be included in the S&P 500 Index in the coming years.